Moody's assigns B3 to Forcepoint loan

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to first time issuer Panther Guarantor II, LP (Forcepoint).

Moody's also assigned a B3 rating to the proposed first-lien credit facilities, which will be issued at Forcepoint's subsidiaries, Panther Purchaser LLC and Panther Commercial Holdings, LP's.

The credit facilities will be used to fund the acquisition of certain cybersecurity assets by private equity firm Francisco Partners from Raytheon Technologies Corp. for roughly $1.1 billion as part of a carve-out transaction.

The outlook is stable.

“The B3 CFR reflects Forcepoint's very high initial leverage at deal close, challenges of separating as a stand-alone company while simultaneously restructuring operations and potential for near term negative free cash flow,” Moody’s said in a news release.

“The rating also reflects the company's leading position across various commercial and government cybersecurity software markets and favorable demand drivers in the security software industry.”

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